Welcome to the latest edition of the TrackCapital Dubai Weekly News Round-Up. We are very excited to be arranging for our UK-based Dubai consultants to be visiting Dubai this September, in order for them to meet with some award-winning developers and learn more about the construction-to-completion process.
If you would like to arrange a face-to-face meeting with one of Dubai specialist property consultants to discuss your investment options, please reply to this article today.
Now, let’s take a look at all the news headlines that caught our attention this week. I always try to summarise the links to save you from having to click through.
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Dubai’s commercial real estate (CRE) market saw a 22% rise in Q2 2023 sales transactions, driving record-breaking semi-annual performance. The total transacted value jumped 101% to Dh21.385 billion, with office properties showing a 49% surge in transactions.
Notable transaction increases were seen in the Business Bay, Jumeirah Lake Towers, Jumeirah Village Circle, Barsha Heights, and Dubai Silicon Oasis areas. Retail also experienced significant growth, but commercial leasing transactions declined by 12%. Despite these challenges, demand for commercial properties remained strong, with international interest from India, Norway, and the UK.
Driven by a real estate boom, the Dubai Financial Market has reached an eight-year high, with gains of nearly 25% this year. The city-state’s bourse outperformed the S&P 500 and the MSCI All-Country World Index, peaking at 4,022. The real estate surge is partially attributed to an influx of Russian investors post-Ukraine invasion.
Shares of Emaar Properties and Emaar Development, responsible for many high-rise buildings including the Burj Khalifa, led recent gains. The real estate sector contributes significantly to Dubai’s economy, and after a pandemic slump, the city saw record residential sales in 2022.
Dubai is set to introduce promising neighbourhoods, including ‘Uptown Dubai’ in JLT, featuring the area’s first supertall tower. In addition, Palm Jebel Ali, twice the size of Palm Jumeirah, is preparing to re-launch, and new villa communities like Emaar’s The Oasis are experiencing high demand.
While established communities provide known investment prospects, new areas may require additional considerations regarding future developments and potential oversupply. It’s important for investors to conduct their own thorough research, taking into account the timeline for delivering amenities and examining the developer’s track record in delivering on their promises.
That is all we have for you this week. If you have any comments or questions on this weeks news summary then please feel free to hit ‘reply’ – if not, see you next week.
Tobi Mancuso
Director, Track Capital
Listen to The Pure Property Podcast from Track Capital here
